High-Paying Accounting Jobs (#202)
/In this podcast episode, we discuss high-paying accounting jobs. Key points made are noted below.
In what positions can you make a lot of money without being on the management track? These would be non-traditional accounting and finance positions. Keep in mind that the hours can be long, and work may start on short notice.
The Preparer of Public Company Reports
A preparer of public company reports is paid very well. Many smaller public companies don’t have enough accounting staff to do the required SEC reporting. And since the reporting activity is quite specialized, they farm it out to people who have a detailed knowledge of the reporting requirements. Someone who wants to get into this line of work needs to do it for a number of years for a larger company, as the in-house reporting specialist. Be aware that the level of precision for this kind of work is incredibly high. Mistakes are not tolerated. Also, expect a brutal work schedule, since there’ll be a few weeks when you work every waking hour. After the quarterly rush is over, there’s no further work until the next reporting period comes around. This work can be done from home.
Forensic Accounting
Another option is forensic accounting. This is usually a function within a consulting or accounting firm, where the partner dredges up a legal or insurance case that requires a detailed investigation. The work can cover all kinds of areas, like securities fraud, money laundering, and reconstructing accounting records. The work is interesting, but be aware that the work load can be bad. Projects might pop up with no warning at all. These investigations could be anywhere in the world. You may need to be an expert witness in court. So if you don’t like to be grilled by an attorney, don’t get into this line of work.
Process Consulting
Another possibility is process consulting. This could mean examining an organization’s existing accounting systems and recommending changes, or it could involve being part of a team that installs software, and the accounting processes have to be reconfigured to work with the new software. These tend to be large projects that could last for months or even a couple of years. Because of the size, they’re usually handled by large consulting firms, so you’d have to work for one of them. There will be travel on these jobs, so expect to be living out of a hotel room. A nice feature is that the client actually wants to work with you, since you’re there to improve their jobs.
Controls Analysis
A variation on process consulting is controls analysis. You can do this as an independent, but it’s more commonly found as a specialization within a larger accounting firm. And as the name implies, this is an examination of the controls that a business has in place. The outcome is a report that states all of the control shortcomings found, with recommendations for how to fix them. This tends to be one of the less stressful jobs, but this is boring work.
Tax Consulting
Another option is tax consulting. This usually means working in an advisory role to assist management, not doing tax filings. This is not a junior position. It means working in tax accounting for a long time to build up the expertise, and possibly adding a law degree onto a masters in taxation. This type of position can be found in the tax practice of a Big Four accounting firm, but it’s also possible in a larger law firm. This is really specialized. For example, it could be targeted at just wealth preservation for rich clients, or for setting up captive insurance companies, or for setting transfer prices, and so on.
Mergers and Acquisitions Consulting
A final suggestion is mergers and acquisitions advisory services. This involves due diligence on acquisition targets, figuring out pro forma results for a combined entity, synergy analysis, and so forth. These services are provided by larger firms, so you’d have to work for one. This can include investment banks, law firms, and larger accounting firms. And yet again, work tends to pop up unexpectedly, and clients expect you to drop everything and work for them for as long as it takes.
Parting Thoughts
A common thread that runs through these positions is that the perceived value to the client is high. So, for example, helping a client to win a case with some quality forensic accounting could be worth millions to the client. Or, some clever tax advice could save millions, too. Same goes for mergers and acquisitions.
On the other hand, focusing on an area where the perceived value is lower means that billing rates will be lower, too. So advising on accounts receivable collections might not justify a high billing rate. Neither would doing bookkeeping as an outsourced service. And neither would preparing tax returns. There’s lots of competition in these areas, and the value is lower, so billing rates are lower. In short, pay attention to the value being created for the client.